Persistent Systems Holds 94.04% of Nagarro as CEO Sandeep Kalra Waits on Approvals

Persistent Systems has secured approximately 94.04% of Nagarro's share capital, excluding treasury shares, and is waiting for outstanding approvals to close the acquisition, CEO Sandeep Kalra said on the company's Q2FY27 earnings call on October 15. NDTV Profit reported the comments.

Persistent Systems is a Pune-headquartered digital engineering and enterprise modernization firm serving clients in BFSI, healthcare, life sciences, and software and hi-tech across more than 18 countries, according to company records. Nagarro SE is the European digital engineering firm Persistent is acquiring.

Persistent Systems' Nagarro Takeover Terms

Kalra said Persistent hoped to receive the outstanding approvals within four to six weeks, with eight weeks as the outer expectation, adding that "these approvals have to come when they come." Persistent has already signed a cooperation agreement that allows the two sides to explore opportunities before the transaction closes.

Kalra flagged a limitation on integration planning while the two remain separate listed entities. "Since the deal is not yet closed, we are two public companies working independently. We have a limited ability to go in and build a synergy plan and so on," he said.

Persistent intends to squeeze out Nagarro's remaining minority shareholders after closing. Kalra said the company would then need "about five to six months to optimistically bring the two companies together."

Nagarro will be replaced by Procredit in the SDax index on October 14, after Persistent acquired Nagarro holding about 94% of its shares, FinanzNachrichten.de reported, citing Deutsche Börse's 10% free-float threshold for index inclusion.

Persistent Systems' Scale And Funding

Persistent Systems reported FY26 revenue of $1,654.4 million as stated on its company website, according to akta.pro company records. The same records list a market capitalization of $8.1 billion as of March 31, 2026, and more than 27,500 employees across 18 countries.

The records show two funding rounds on file, including a July 2026 post-IPO debt round of $1.6 billion led by Barclays.

Persistent Systems' Path To The Nagarro Deal

On September 22, 2026, Persistent Systems acquired an additional 61.15% stake in Nagarro, The Times of India reported. On October 6, 2026, Persistent Systems shareholders approved a proposal to raise up to $1.25 billion through debt and equity-linked instruments, with the Nagarro transaction expected to close by Q4 2026 or Q1 2027, NDTV Profit reported.

On October 15, 2026, Persistent Systems reported a 5% year-on-year rise in Q2 PAT excluding items to ₹495.15 crore, while reported PAT fell 25.4% to ₹351.51 crore due to a ₹185.34 crore Nagarro acquisition expense, CNBC TV18 reported.

Persistent Systems' Closing Timeline

Kalra said Persistent expects the outstanding approvals within four to six weeks, with eight weeks as the outer expectation, and the squeeze-out of Nagarro's remaining minority shareholders to follow closing.